Wednesday, June 28, 2017

The Los Angeles Times released a new editorial Tuesday, June 27th, on Congress’ solution to the rising cost of college tuition regarding federally subsidized college loans. Under a compromise, Congress would keep interest rates at their current level: around 3.4%. The cost of this decision is an extra $6 billion in costs charged to companies to insure their pension programs. In addition, the eligibility for receiving a loan will be cut off for those students who take more than six years to earn a bachelor’s degree. Congress will also bebe looking in to a possible increase of 1%, similar to rates in previous years when people were not complaining that the rate was exorbitant. As these federal loans cap at $23,000, the degree to which these interest rates effect student borrowers is minimal, as the reduced rates are easily wiped out by rising tuition rates.

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